Mr. Darin Labrenz reports

PURE GOLD MAKES NEW DISCOVERY AT RUSSET SOUTH, MADSEN GOLD PROJECT

A new zone of near-surface gold mineralization has been discovered at the Russet South target on Pure Gold Mining Inc.'s 100-per-cent-owned Madsen gold project. These new discovery holes add critical mass to Russet South, which is shaping up to be an important component of Pure Gold's modern development strategy. Consistent drill results from new areas such as Russet South, McVeigh, A3 and Starratt reinforce the resource expansion program that is under way and the widespread untapped potential of the Madsen gold project.

Highlights from new drilling at Russet South include:

• 23.1 grams per tonne gold over 1.9 metres in hole PG17-310;
• 8.3 g/t gold over 1.7 metres in hole PG17-316;
• 4.4 g/t gold over 12 metres in hole PG17-335 including 14.3 g/t gold over two metres;
• 21.4 g/t gold over 1.9 metres in hole PG17-341.

"Our drilling has been highly successful in intersecting widespread gold mineralization at Russet South," said Darin Labrenz, president and chief executive officer of Pure Gold. "The mineral system is similar in setting and style to that of significant portions of the existing resource at Madsen, and results released today have expanded this satellite gold target significantly. Drilling has now intersected gold mineralization across a 650-metre-by-650-metre footprint, to depths less than 250 metres demonstrating the near-term, near-surface potential for meaningful resources within a short distance of Madsen's permitted mine infrastructure."

New zone of mineralization discovered

The new gold zone at Russet South is highlighted by hole PG17-335 which returned 4.4 g/t gold over 12.0 metres. This zone lies on the eastern side of Russet South, approximately 200 metres north and along strike of intercepts drilled in 2015 and 2016, including 12.3 g/t gold over 2.9 metres in PG15-0452 and 17.7 g/t gold over one metre in PG16-0993. Gold mineralization in all of these holes is associated with deformed blue-grey quartz veins hosted in a 200-metre-thick wedge of basalt located between two distinct ultramafic units. This near-surface setting is structurally and stratigraphically analogous to known deep mineralization that forms the Madsen 8 zone deposit which has indicated resources of 132,000 ounces gold at 12.21 g/t Au (in 340,000 tonnes) and inferred resources of 185,000 ounces gold at 18.14 g/t Au (in 320,000 tonnes).

Drilling at Russet South expands mineralized zones and builds continuity

Additionally, new drill holes reported herein have intersected gold mineralization in the hangingwall of the previously reported mineralization on the western extent of Russet South, expanding the scale of, and demonstrating continuity of mineralization in this area. The reported intercepts from PG17-310 are 150 metres along strike to the southwest from a previously reported intercept in PG15-028 of 8.2 g/t gold over 11.0 metres, with both intercepts hosted in a package of folded quartz veins on the lower contact of an ultramafic unit. The intercept reported from PG16-341 was a 50-metre stepout to the north from this visible gold-mineralized intercept in PG17-310 highlighting the along strike continuity of the mineralized quartz vein envelope.

Drill results summary

                  NEW ASSAY RESULTS FROM SELECT DRILL HOLES 

Hole                    From             To         Length           Gold  
ID                       (m)            (m)            (m)          (g/t)

PG17-302               104.6         106.30            1.7            6.3
PG17-310               138.2         140.00            1.9           23.1
                       174.4          175.4            1.0            5.0
                       178.8          190.0           11.2            2.4
incl.                 181.45         183.00            1.6            6.8
                      254.00         255.20            1.2            6.0
PG17-313              251.80         252.90            1.1            7.3
PG17-316              128.40         130.10            1.7            8.3
PG17-328              118.00         125.38            7.4            2.8
PG17-335               190.0          202.0           12.0            4.4
incl.                  190.0          194.0            4.0            8.9
incl.                  190.0          192.0            2.0           14.3
PG17-336               126.2          152.5           26.3            1.8
incl.                  139.0          140.7            1.7            8.8
PG17-341               156.1          158.0            1.9           21.4

* Assay composites were calculated using uncut assays and true widths 
are interpreted to vary from 70 to 90 per cent (80 per cent, on average) 
of reported core lengths.

Pure Gold's 2017 exploration program is continuing with four drill rigs currently testing resource growth potential near the mine infrastructure and along the more-than-five-kilometre strike length of the Madsen mineral system. The program is expected to include 70,000 metres of core drilling, and will include underground drilling, expected to commence in the second quarter of 2017. Further results will be released as available.

About Madsen

The Madsen mine operated for over 36 years with historic production of 2.5 million ounces at an average grade of 9.9 g/t gold. The Madsen gold project hosts a permitted mill and tailings facility, and access to power, water and labour. The Madsen gold project has an indicated resource of 928,000 ounces gold at 8.93 g/t gold (in 3.24 million tonnes) and an inferred resource of 297,000 ounces gold at 11.74 g/t gold (in 790,000 tonnes) (1). The mineral resource is based on 13,624 drill holes, evenly dispersed throughout the mineral resource. A robust geologic model based on 27 levels of geological mapping and chip sampling provides a solid understanding of the geology and continuity of mineralization.

In addition to the mineral resource, the Madsen gold project hosts a number of prospective new discoveries including the Fork zone and Russet South targets, as well as two significant historic underground mines. Pure Gold believes the opportunity exists to advance these targets through the application of modern exploration science and a new understanding of the district.

The proximity and geologic similarities to Madsen do not mean that Pure Gold will obtain similar results at Russet South or other exploration targets on the Madsen property. Russet South is an early-stage exploration project and does not contain any current mineral resource estimates. The potential to define a mineral resource at Russet South or other targets is conceptual in nature and there has been insufficient exploration to define a mineral resource. It is uncertain if further exploration at these or other targets at Madsen will yield a mineral resource

Quality assurance/quality control and core sampling protocols

Drill core samples are bagged and sealed and submitted to SGS in Red Lake, Ont., for sample preparation by crushing to 75 per cent less than two millimetres, a riffle split of one kilogram and pulverization of the split to better than 85 per cent passing 75 microns. Gold analysis is completed in the SGS Red Lake lab with a 30 g fire assay and AAS finish (code GE-FAA313). Samples returning greater than five g/t Au are reassayed with a gravimetric finish (code GO-FAG303). Mineralized zones with visible gold are also analyzed by a one-kilogram screen fire assay with screening to 106 microns (code GO-FAS51K). Two 30 g fire assays are conducted on the screen undersize and combined with an assay of the entire oversize fraction. Control samples (accredited standards and non-accredited blanks) were inserted on a regular basis. Results are assessed for accuracy, precision and contamination on a continuing basis.

Qualified persons and National Instrument 43-101 disclosure

Phil Smerchanski, PGeo, vice-president, exploration, for the company, is the designated qualified person for this news release within the meaning of National Instrument 43-101, and has reviewed and verified that the technical information contained herein is accurate and approves of the written disclosure of same.

We seek Safe Harbor.